Saudi Electricity shareholders approve dividend

RIYADH - Saudi Electricity Co. 5110.SE said on Sunday its shareholders approved the distribution of a 0.7 riyal ($0.19) cash dividend for 2006, unchanged from the previous year.

By (Reuters)

Published: Sun 22 Apr 2007, 5:09 PM

Last updated: Sat 4 Apr 2015, 9:16 PM

Shareholders also approved plans to sell Islamic bonds, or sukuk, to help finance the company’s investment plans, Saudi Electricity said in a statement on the bourse’s Web site. It did not give more details.

The Gulf’s largest utility by market value will pay 2.9 billion riyals to shareholders, according to a Reuters calculation, more than double the firm’s 2006 net profit of around 1.4 billion riyals.

Saudi Electricity has been struggling to find the funds to meet growing power demand. King Abdullah last year ordered financial aid for the company to help it cope.

Company executives said last month Saudi Electricity may sell between 11 billion riyals and 15 billion riyals of sukuk during the next 10 to 15 years.

One company official, who declined to be identified, said the bonds would be sold in as many as five batches with maturities of five years to 10 years, with the first issue planned in the second half of the year.

The state-controlled company has said 150 billion riyals of investment is needed in the next decade to cope with rising demand for electricity in the world’s top oil exporter, which has a population of about 24 million.

Saudi Electricity made a first-quarter net loss of 434 million riyals.

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